Promises
3 promises
Promise Tracker
0 delivered, 0 close, 3 missed.
View Promises →
Larsen & Toubro Limited — Q1 FY26
L&T delivered a strong Q1 FY26 with group revenues of INR 63,700 crore (+16% YoY) and PAT of INR 3,600 crore (+30% YoY), driven by robust execution in hydrocarbons and high-tech manufacturing.
bullish
high
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
L&T delivered a strong Q1 FY26 with group revenues of INR 63,700 crore (+16% YoY) and PAT of INR 3,600 crore (+30% YoY), driven by robust execution in hydrocarbons and high-tech manufacturing. Order inflows surged 33% YoY to INR 94,500 crore, lifting the order book to INR 6.13 trillion (+25% YoY). The EBITDA margin contracted 30bps to 9.9% due to revenue mix shift, but P&M margin held at 7.6%. Management maintained FY26 guidance: 10% order inflow growth, 15% revenue growth, and P&M margin of 8.3%-8.5%. The prospects pipeline jumped 63% to INR 14.8 trillion, led by hydrocarbon and infrastructure. Key risk: execution ramp-up in competitively priced hydrocarbon jobs may pressure margins in the near term.
L&T ने पहली तिमाही (अप्रैल-जून 2025) में मजबूत प्रदर्शन किया। कंपनी की कुल कमाई ₹63,700 करोड़ रही, जो पिछले साल से 16% ज्यादा है। मुनाफा ₹3,600 करोड़ रहा, जो 30% बढ़ा। यह तेल-गैस और हाई-टेक मैन्युफैक्चरिंग में अच्छे काम की वजह से हुआ। नए ऑर्डर 33% बढ़कर ₹94,500 करोड़ हो गए, और कुल ऑर्डर बुक ₹6.13 लाख करोड़ पहुंच गई। मुनाफे का मार्जिन थोड़ा घटकर 9.9% रहा, लेकिन मुख्य कारोबार का मार्जिन 7.6% पर स्थिर रहा। कंपनी ने पूरे साल के लिए अनुमान दोहराया: 10% ऑर्डर बढ़ोतरी, 15% कमाई बढ़ोतरी, और 8.3%-8.5% मार्जिन। आगे के कामों की संभावना 63% बढ़कर ₹14.8 लाख करोड़ हो गई। खतरा: सस्ते दाम वाले तेल-गैस ऑर्डरों पर मुनाफा दबाव में आ सकता है।
Promises0 met · 3 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
4 risks
Risk Intelligence
Hydrocarbon margin pressure from competitive jobs
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Order Inflows
INR 94,500 crore
+33% YoY
Group order inflows for Q1 FY26, driven by strong ordering momentum in products and manufacturing.
Order Book
INR 6.13 trillion
+25% YoY
Order book crossed INR 6 trillion milestone, with balanced geographic mix (54% domestic, 46% international).
Prospects Pipeline
INR 14.8 trillion
+63% YoY
Prospects for remaining nine months, led by hydrocarbon (INR 5.78 trillion) and infrastructure (INR 7.97 trillion).
Net Working Capital to Sales
10.1%
-380bps YoY
Improved from 13.9% in June 2024, driven by strong customer collections and better working capital management.
What Changed vs Last Quarter
NEW
Group order inflows growth of 10% for FY26
Management expects group order inflows to grow 10% year-on-year for the full fiscal year.
NEW
Group revenue growth of 15% for FY26
Group revenues are expected to grow 15% year-on-year for FY26.
NEW
P&M margin target of 8.3%-8.5% for FY26
Products and manufacturing portfolio EBITDA margin is targeted in the 8.3%-8.5% range for the full year.
UPDATED
Net working capital to revenue guidance of 12% for March 2026
Net working capital to revenue ratio is expected to be 12% as of March 2026.
DROPPED
Revenue growth to exceed 15% for FY25
Group revenues for 9M FY25 grew 18% YoY; strong order book supports upside to the initial 15% growth guidance.
DROPPED
Order inflow growth to surpass 10% for FY25
9M FY25 order inflows up 16% YoY; strong Q4 pipeline of INR 5.51 trillion expected to exceed the 10% guidance.
DROPPED
P&M EBITDA margin guidance maintained at 8.2% for FY25
Despite 7.6% margin in 9M, management expects Q4 margin to be higher to achieve full-year target.
NEW RISK
Hydrocarbon margin pressure from competitive jobs
Execution ramp-up in competitively priced hydrocarbon jobs awarded in 2021-22 may keep margins subdued in H1 FY26.
NEW RISK
Execution slowdown in water segment due to funding constraints
Jal Jeevan mission projects face fund allocation issues, impacting execution and working capital in the water segment.
NEW RISK
Labor churn impacting project execution
High labor turnover (every three months) at construction sites leads to retraining costs and potential delays.
RISK GONE
Slippage in large order closures
Management noted that large orders in Q4 pipeline could slip to subsequent quarters, impacting order inflow guidance.
RISK GONE
Margin pressure from fixed-price contracts
45% of order book is fixed-price; cost overruns or delays could compress margins, especially in hydrocarbon and thermal projects.
RISK GONE
Execution challenges in domestic infrastructure
Delayed payments in water projects under Jal Jeevan Mission led to temporary execution slowdown; recovery depends on fund flow.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q4 FY25
Capital expenditure for the year expected to be around ₹4,000 crore, in line with previous guidance.
Mentioned in Q1 FY25, Q4 FY25
The prospects pipeline fell 10% YoY to ₹9.07 trillion, primarily due to a decline in hydrocarbon prospects, partly from Saudi Aramco's CapEx deferrals.
Mentioned in Q1 FY25, Q2 FY25
Large hydrocarbon projects in the Middle East are fixed-price; any delay could compress margins.
Mentioned in Q1 FY25, Q4 FY25
Headwinds from geopolitical conflicts, supply chain disruptions, and commodity price volatility could impact international operations.
Mentioned in Q1 FY25, Q4 FY25
Management highlighted that skilled labor shortages could slow infrastructure progress in India, exacerbated by elections and heat in Q1.
Fast read
Guidance and risk preview
Management expects group order inflows to grow 10% year-on-year for the full fiscal year.
Execution ramp-up in competitively priced hydrocarbon jobs awarded in 2021-22 may keep margins subdued in H1 FY26.
View Risks →